Foreign direct investments in Romania double to EUR 4.1bn in first five months

Five-month foreign direct investments (FDI) in Romania doubled to 4.114 billion euros covering about 63 percent of the current account deficit, the central lender said today.

Last year in the similar period FDI stood at 2.138 billion euros and covered 36 percent of the current account gap.

FDI in the country were 59 percent capital participations and reinvested profit and 41 percent intra-group loans. Credits Romanian divisions take from mother companies abroad can fuel the wide current account because they are paid back at maturity. Such loans accounted for 38.2 percent of the C/A gap last year until May.

FDI advanced 27.8 percent from January to May this year versus the first four months when they stood at 3.22 billion euros.

Romania’s current account deficit widened 11.08 percent to 6.526 billion euros fueled by the trade gap.

Last year FDI dropped 22.3 percent to 7.069 billion euros and covered the C/A deficit 41.9 percent.

NewsIn